“Sebi approval has come for the deal,” said a source close to the development. “This will help IL&FS pay dues for some time.”

The debt-laden IL&FS has been looking to sell stakes in subsidiaries and monetise assets to pare down debt. The infrastructure finance company has a debt pile of Rs 91,000 crore. It has approached NCLT under the companies Act to propose a plan to resolve with creditors without going for liquidation.

The deal was already approved by the banking regulator, Reserve Bank of India.

In June, IndusInd Bank signed a definitive agreement to acquire 100 per cent of the IL&FS subsidiary that specialises in the capital markets business. No financial terms were announced.